200,000 extra workers will be eligible for furlough as Government plugs gap in jobs bailout plan

Linda J. Dodson

Hundreds of thousands more people will be able to claim back 80pc of their wages, as the Government has bowed to pressure and plugged a hole in the furlough bailout scheme.

Anyone who started in a new job and had been paid by March 19 are now eligible to receive the Job Retention Scheme grant, provided they were on the PAYE payroll. 

This has been extended from the date originally set by the Treasury, February 28, after a backlash from those who were caught between jobs found themselves with no support.

The extension will mean that 200,000 more people will be able to apply for the grant, the Government has estimated.

On March 21, Chancellor Rishi Sunak pledged to pay up to 80pc of wages, up to £2,500 a month, to protect the jobs of staff who cannot work.  

It is the first time in British history the Government has announced it would step in and pay people’s wages in a bid to protect people’s jobs amid the coronavirus fallout.

New guidance published by the Government confirmed that those made redundant after 28 February can be reemployed and placed on furlough.

However, if they started a new job and were on the payroll as of March 20, they can now apply for a furlough grant with their new employer. 

Martin Lewis, founder of Moneysavingexpert, said there are still many who will have seen their new jobs fall through before starting but the Treasury should be “applauded” for chaning its initial stance. 

Mr Lewis said: “This move should probably light a dim flame of hope in others who feel unjustly unsupported, such as limited company directors and new starter self-employed.”

The support package will be available to workers of companies that are on the Treasury’s Coronavirus Job Retention Scheme, which is expected to be up and running next week.

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